Currently, promotional systems are executed in two ways. The first method is a manufacturer direct promotion, most commonly known as a rebate. In this model, consumers purchase a product then provide proof of purchase to the manufacturer by mailing in a proof of purchase or entering proof of purchase into a website. This model is both expensive for the manufacturer due to the administration cost of accepting proof of purchase, then requires the manufacturer to issue payment to the consumer via mail. The inefficiencies are found both in cost of administration and postage costs for remittance to the consumer.
The second method, commonly known as “coupons,” involves a promotional discount code that is generally found in physical form as Free Standing Inserts or “FSIs”. These require consumers to select their desired offers and bring the promotional media with them to the store. These FSIs are then scanned and applied to the total cost at checkout. FSIs are generally inefficient for consumers because the consumers often leave the physical media at home. From a marketers perspective, there are also inefficiencies due to the inability to provide coupons that can be utilized across various retailers.
Accordingly, there is a need for a system and method for handling promotional savings that reduce the inefficiencies for both consumers and marketers.